Date:02/09/2008 URL: http://www.thehindu.com/2008/09/02/stories/2008090260681500.htm

National

“Inflation will come down to single digit by March 2009”

Sandeep Joshi

NEW DELHI: Planning Commission’s Deputy Chairman Montek Singh Ahluwalia on Monday said inflation would gradually decline and reach the single-digit mark by March 2009.

“I see inflation coming down in the next few months. There are so many positive things happening that would have a positive impact on the prices of various commodities. Agriculture growth rate that stood around 2 per cent last fiscal is expected to cross 3 per cent this year, which will have a positive impact on the prices of essential commodities. We will end this year [fiscal] in single digit [inflation],” said Dr. Ahluwalia.

Pointing to the marginal decline in the inflation rate last week, Dr. Ahluwalia said a number of measures had already been put in place to check inflation. The figures would further decline in the next three to four months.

Releases book

Dr. Ahluwalia, who was speaking to journalists after releasing a book “Corporate social responsibility in India: past, present and future” written by S.K. Panda, said India’s economic growth this year would be around 8 per cent which would be a “good performance” in view of the global economic slowdown. “In the first quarter of 2008-09, economic growth was at 7.9 per cent as the Indian economy is also witnessing a slowdown. Still a growth of 8 per cent would be reasonable.”Talking about the National Rural Employment Guarantee Scheme, the Planning Commission Deputy Chairman said overall it had worked well for the country and generated employment in rural areas. “It has been thrice more successful compared to earlier similar schemes. It is a good scheme and we want to make it better. We want to bring about convergence by enhancing productivity of land and generate more income and employment. We want to optimise choice of projects and scheme. We have already sent a report on the same to the Prime Minister,” said Dr. Ahluwalia.

He, however, said some States had shown good results, while some still lagged behind.